Benchmarking models for different organizations 2014
Basic understandings Benchmarking is the process of comparing ones business processes and performance metrics to industry bests and/or best practices from other industries. Dimensions typically measured are quality, time, and cost. Improvements from learning mean doing things better, faster, and cheaper.
1. Learning from best practices from any industry and incorporating them for improvement 2. Helping an organization to understand its current performance 3. Encouraging for continuous improvement projects 4. Improved customer satisfaction 5. Improves competitiveness 6. Enhances productivity 7. Helps in thinking out of box 8. Stimulates motivation among the employees. Reasons for Benchmarking
Benchmarking Model at Xerox A. Planning: Determining the subject to be benchmarked, identify the relevant best practice and develop most appropriate data collection technique. B. Analysis: Assess the strengths of competitors and compare Xeroxs performance with competitors. C. Integration: Establish necessary goals and integrate these goals into the companys formal planning processes. D. Action: Implement action plans established and assess them periodically to determine whether the company is achieving its objectives. E. Maturity: Determine whether the company has attained a superior performance level.
Reaping The Benefits Number of defects reduced by 78 per 100 machines. Service response time reduced by 27%. Defects in incoming parts reduced Inventory costs reduced by two-thirds. Marketing productivity increased by one-third. Distribution productivity increased by 8-10%. Errors in billing reduced from 8.3% to 3.5%. Became the leader in the high-volume copier-duplicator. Units improved sales from 152% to 328%. During 1990s, Xerox, along with companies like Ford, AT&T, IBM, Motorola created the International Benchmarking Clearinghouse (IBC) to promote Benchmarking and guide companies across the world in benchmarking efforts.
Lean Process model
There are a variety of forms of waste Defects Overproduction Waiting Transportation Inventory Extra-processing Inefficient use of human potential Solution Error proofing ("Poka -Yoke") Just-in-time production Built-in reliability Proper Implementation